Zepto files for $1.3-billion IPO: Report
In a significant development, the quick commerce platform Zepto has received approval from its board of directors for a $1.3 billion (approximately ₹11,680 crore) Initial Public Offering (IPO) with markets regulator Securities and Exchange Board of India (SEBI), according to sources. This move is expected to provide a major boost to the company’s growth plans and expansion strategy.
As per the reports, the company plans to raise around ₹11,000 crore through fresh issue, while the remaining amount will be raised by early investors selling their shares. The shareholders approved the IPO on December 23, paving the way for the company to move forward with its plans.
Zepto, which has been making waves in the quick commerce space with its rapid delivery model, has been growing at an incredible pace. The company’s decision to go public is seen as a testament to its success and a reflection of the growing demand for quick commerce services in India.
The IPO filing is a significant milestone for Zepto, which has been backed by prominent investors such as Y Combinator, Nexus Venture Partners, and Glade Brook Capital. The company’s valuation is expected to be around $5-6 billion, making it one of the most valuable startups in India.
Zepto’s business model is based on providing quick and convenient delivery of groceries and other essentials to customers. The company uses a network of dark stores and partnered stores to fulfill orders, ensuring that customers receive their products within a short span of time. This model has proven to be highly successful, with Zepto witnessing rapid growth in its customer base and revenue.
The funds raised from the IPO will be used to further expand Zepto’s operations, improve its technology and infrastructure, and enhance its customer experience. The company is also expected to use the funds to invest in new initiatives and explore new markets, both within and outside India.
The IPO filing by Zepto is also seen as a positive sign for the Indian startup ecosystem, which has been witnessing a surge in funding and growth in recent years. The success of Zepto’s IPO is expected to encourage other startups to follow suit, leading to a wave of new listings and further boosting the growth of the Indian economy.
In recent years, the Indian IPO market has witnessed a significant surge in activity, with several high-profile listings taking place. The success of these listings has demonstrated the appetite of investors for Indian stocks and has provided a boost to the country’s economic growth.
The IPO market is expected to remain buoyant in the coming months, with several other companies lined up to list their shares. The listing of Zepto is expected to be one of the most highly anticipated IPOs of the year, with investors eagerly waiting to participate in the offering.
In conclusion, the filing of the draft papers by Zepto for its $1.3 billion IPO is a significant development that is expected to provide a major boost to the company’s growth plans. The success of the IPO will not only benefit Zepto but also provide a fillip to the Indian startup ecosystem, encouraging other companies to follow suit. As the Indian economy continues to grow and evolve, the IPO market is expected to play a critical role in providing funding to companies and driving economic growth.
Source: https://www.newsbytesapp.com/news/business/zepto-files-draft-papers-with-sebi-for-1-3b-ipo/story
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